iPhone 5c not doing too well

[Deleted member 2457]

Here:

http://www.t3.com/news/apple-cutting-iphone-5c-production

 

[richardw42]

There's not enough of a price difference between it and the 5S.

Build wise though, it's far from a budget product. Less S4, more 3GS. Its nicer in the hand than the 5/5S.

 

[Deleted member 2457]

There's not enough of a price difference between it and the 5S.

Build wise though, it's far from a budget product. Less S4, more 3GS. Its nicer in the hand than the 5/5S.

Yep, I checked it out yesterday in the Apple shop, and was surprised by how light it was. I quite liked the camera too, and I liked the finger print sensor on the 5s, although I couldn't get it too work probably!

 

[tomolo]

just as i expected, 5C is a good choice

 

[Deleted member 2457]

just as i expected, 5C is a good choice

What, because not many people want one? . At least you are not going with the one to have trend.

 

[AnotherJoe]

The 5C is basically last years Iphone5 and now in a cheap plastic case - but they are still trying to charge almost full price for it.

If you look at the upgrade the 5S got in terms of a CPU & GPU upgrade then the 5C is poor value in comparison.

Not that I'd recommend buying any phone that costs that much.

 

[Kayla_Harris_0909]

In the case of small price difference, obviously most people would choose iPhone 5S.

 

[jjbomber]

There's not enough of a price difference between it and the 5S.

That's the whole idea. The iphone 5S costs £130 to make and has a huge mark up. It looks a rip-off and is. However, put it next to the 5c and it looks cheap, so will sell in bucketloads. Simple, basic marketing.

 

[MajorFubar]

I beg to differ. It's expensive, but you can't say something's a rip-off just because there's a chasm between its output-cost and its retail-price; the two can't be compared, there's loads of other factors. Manufacturers that are selling phones for £150 sure as hell aren't spending anywhere near that making them. If you want to call Apple's prices a rip-off, you want to see some hi-end HiFi. Being deliberately flippant, there's only so much money you can spend on the world's best capacitors and a few transistors, yet some of the amps they shove them in retail for thousands.

 

[Paul.]

There's not enough of a price difference between it and the 5S.

That's the whole idea. The iphone 5S costs £130 to make and has a huge mark up. It looks a rip-off and is. However, put it next to the 5c and it looks cheap, so will sell in bucketloads. Simple, basic marketing.

Apple's margins as a company are currently sat at 22%. That is not an unreasonble sum of money for a company to earn, far less margin than pretty much every single high street clothes shop.

http://ycharts.com/companies/AAPL/profit_margin

 

[jjbomber]

Apple's margins as a company are currently sat at 22%. That is not an unreasonble sum of money for a company to earn, far less margin than pretty much every single high street clothes shop.

I am talking about the margin on the iphone 5S and nothing else. They are all in this month's PCPro. I shall dig it out and give a few more examples. The Iphone 5S in £130 to make.

Maybe Apples margin of 22% is after paying journalists

 

[Paul.]

Thats £130 materials and manufacturing cost, doesn't include freight, marketing, paying for Jonny Ives Aston Martin, cost of all the server farms, Software development, licensing for all the mobile gubbins etc.

 

[jjbomber]

Thats £130 materials and manufacturing cost, doesn't include freight, marketing, paying for Jonny Ives Aston Martin, cost of all the server farms, Software development, licensing for all the mobile gubbins etc.

At £549, that's a lot of Aston Martins!!!

 

[MajorFubar]

I did explain that there were loads of other factors in my post you ignored. And it's still an awful lot better than some so-called hi-end HiFi.

 

[bigboss]

It's not the cost of manufacturing that decides the price; it's the demand:supply ratio. That's why TVs are sold at a loss while mobile phones are sold at a profit. If you think it's expensive, don't buy it. People who find it worth the cost will buy it. And Apple continues to earn tidy profits while manufacturers like HTC are struggling and incurring losses on their "sensibly priced" phones.

 

[fr0g]

Apple's margins as a company are currently sat at 22%. That is not an unreasonble sum of money for a company to earn, far less margin than pretty much every single high street clothes shop.

I am talking about the margin on the iphone 5S and nothing else. They are all in this month's PCPro. I shall dig it out and give a few more examples. The Iphone 5S in £130 to make.

Maybe Apples margin of 22% is after paying journalists

More likely after paying lawyers for their patent trolls.

 

[jjbomber]

I did explain that there were loads of other factors in my post you ignored. And it's still an awful lot better than some so-called hi-end HiFi.

I don't know of any high end hi-fis making a 400% mark-up. A lot are around the 100% mark. Incidently, Sonus are classed as computer goods so have a very small mark up, which is why they are such great value for money.

 

[Verity Burns]

I still find it so funny that people genuinely seem to think that us journalists get paid off by companies to say good things about their products. One look at my bank account would tell you that is very much not the case!

Anyway, I'm certainly not surprised that the numbers for the 5C aren't great... keeping its price so high, and so close to the 5S, seemed like a very strange decision to me.

 

[MajorFubar]

Sonus are classed as computer goods so have a very small mark up, which is why they are such great value for money.

This must be a different Sonos to the one that markets the Sonos Connect for £279, which probably costs as much to actually make in terms of electronic parts as my kids' £70 Acer tablets. But I'm not singling-out the Sonos as being especially bad value. It's just to prove a point that you really can't judge what a product is worth on the market based on the material cost of manufacturing it. There's too many other variables.

 

[scatmanben]

Whilst I am not defending Apple and their pricing structure I believe the end price of a piece of consumer electronics and the actual manufacturing price are usually quite far apart.

I heard off someone once that a typical piece of hifi costs 1/5th of the final retail price to manufacture. This does not take in to account the money involved in developing the product, or supporting it.

By the time the margin is taken by the different levels in the supply chain (including VAT) the price soon mounts up.

 

[altruistic.lemon]

I did explain that there were loads of other factors in my post you ignored. And it's still an awful lot better than some so-called hi-end HiFi.

I don't know of any high end hi-fis making a 400% mark-up. A lot are around the 100% mark. Incidently, Sonus are classed as computer goods so have a very small mark up, which is why they are such great value for money.

Mate, I know fa about this, but even I know you have to add in development, design, marketing and production costs into the price. Your markup is a heap of fiction.

 

[carter]

Don't no why people get so upset about it,if you think it's worth the money get it if you don't then get something else.

if they don't sell enough the price will soon come down or they will stop making them

somtimes I think the people it annoys the most are the ones that really want them but can't afford them.

 

[jjbomber]

]Mate, I know fa about this,

Yep, I'd already guessed that.